ESTECH Pays $1.4 to Settle Qui Tam False Claims Suit

July 16, 2009

DoJ announced Tuesday that Endoscopic Technologies, Inc. (Estech) a manufacturer of cardiac surgery devices, will pay $1.4 million to settle whistleblower allegations that it marketed its ablation devices to treat atrial fibrillation, a use not approved by the U.S. Food and Drug Administration (FDA). DoJ also alleged:

Estech promoted expensive heart surgeries using the company’s devices when less invasive alternatives were appropriate, advised hospitals to up-code surgical procedures using the company’s devices to inflate Medicare reimbursements, and paid kickbacks to healthcare providers to use its devices.

The whistleblower — who originally filed the suit under the qui tam provisions of the False Claims Act — will receive over $200,000 for uncovering the scheme. To report healthcare fraud, contact Frohsin & Barger.

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